The facts behind the Residence Nil Rate Band (RNRB) are considered here. This article provides an opportunity to learn about the planning options available for clients to maximise the RNRB.
- Gifting can deliver an effective rate of relief of up to 60% for estates over £2m
- Beware of a ‘combined’ estate on second death exceeding £2m
- Be careful when leaving the home in trust for minors where the gifts are age contingent
- Leaving the home to a discretionary will trust can provide a gateway to crystallising RNRB
- Where a mortgage restricts the availability of RNRB, planning might assist